Wednesday, September 5, 2007

What’s the Purpose of this Call?

How many calls does it take for your reps to close a sale? Most reps will tell you “it depends” – on the market, the individual customer, the competition, and any other number of variables. But that’s the wrong answer. If your reps don’t know exactly how many calls it should take them to close a sale, and what the objective of each of those calls is, they’re just fumbling their way through the sale.

“The critical understanding that underlies all your selling efforts is that selling is not hanging around being nice to people in some random fashion. If you don’t establish a sales strategy and CAO (Customer Action Objective) for each of your sales calls, you will be wasting your time,” warns Ferdinand Fournies, business consultant to companies such as Merck, HP, and 3M, and author of Why Customers Don’t Do What They’re Supposed to Do … And What To Do About It (McGraw-Hill, 2007).

Consider this example. Fournies was recently speaking at a national meeting to salespeople whose product was a $25,000 chemical analysis machine sold to hospitals. He asked his audience how many calls it took to sell their product to a hospital and most people responded, “11 or 12 months.” Okay, replied Fournies, but how many calls? As a group, the reps argued that “it depends” because all hospitals are different. That’s when the company’s highest performing rep raised his hand and said, “Mr. Fournies, if I don’t sell the product by the third call, I don’t go back.” The room fell silent as this rep explained his strategy.

On his first call, he said he qualifies the customer. He finds out whether the customer needs the product and can afford it and who would make the buying decision. If the answers are positive, the rep schedules a second appointment. During that second meeting, he demonstrates the equipment to the buyer and all the users and gets them to make the buying decision. On the third call, he picks up the purchase order.

The key to this rep’s success, explains Fournies, is that he has specific, measurable customer action objectives for each sales call: On call number one, “the customer will describe to me the company’s diagnostic needs, identify the decision maker for equipment purchases, indicate the current budget status, and give me an appointment to demonstrate my equipment.” He outlines similar, customer-oriented objectives for calls number two and three. When Fournies asked other reps about their objectives for their first call, the answers were vague, varied, and focused on what actions they, the reps, would be taking – not the actions they wanted customers to take. Their goals included things like: establish a relationship, show them the product, get a foot in the door, sell one unit, and so on.

To create a multiple-call selling strategy, work backward from the objective of your last call, asking yourself, “Why can’t we go over there and do that now?” You’ll find out specifically what actions the customer must take on each sales call to advance the sale. And you’ll be able to determine the minimum number of sales calls you need to close the sale.

Once you do this exercise, challenge your reps to close sales in the minimum number of calls.

Tuesday, September 4, 2007

Feeling Down? Volunteer!

I'm sure you're familiar with the old saying that "it is better to give than to receive." This sounds good, but it actually turns out to be true. By giving – of your time, help, or money – you can improve your own happiness level and even your health. As a matter of fact, giving can be even better for the giver than the receiver.

I found this out reading an article about Dr. Stephen Post, who heads the Institute of Research on Unlimited Love at Case Western Reserve University. There he sponsors scientific studies on how doing good for others can help people lead healthier, happier, and even longer lives. But his interest in the subject started when he was a young boy growing up in Long Island, New York.

Whenever he would get restless or feel down in the dumps, his mother would say, "Well, Stevie, why don't you go out and help somebody?" So he would look around for something to do for someone, like helping a neighbor with a yard chore. And he discovered that helping others really did make him feel better and was rewarding. And that childhood lesson led him to his adult vocation.

Since then, many studies have shown the physical and emotional benefits of giving. There's even a kind of "helper's high" that shows up on MRI brain scans when people donate their time or help to others. In one case, when former heart patients were asked to visit current patients, just to listen and be supportive, those former patients had better health afterwards.

Another study found that seniors who gave their time to various causes tended to live longer. And a study done with high school students who were in a "service learning" program, where they were required to volunteer, showed their grades and moods actually improved.

So, why not give a little – and you'll get a lot!

Friday, April 13, 2007

Using Positive Questions to Make Positive Connections

While I was traveling last week, I picked up a book that I have had on my buy list for a few years. It is called Encyclopedia of Positive Questions - Volume One by experts in Appreciative Inquiry, Cooperrider, Whitney, Trosten-Bloom and Kaplin.

At the beginning of the book they offer these 11 ways to use positive questions.

  • Get staff meetings off to a good start
  • Coach for high performance
  • Transform "problem talk" into "possibility talk"
  • Create dialogue to foster shared meaning
  • Demonstrate positive intent and trust with customers
  • Create a learning organization
  • Build high performance teams
  • Conduct project reviews that make a difference
  • Build self-esteem
  • Plan a course of action for the future
  • Create your own interview guide

Positive questions can do all that?

Asking great questions can make a big difference to how your teams feel and perform. Here are just a few of the questions from the book. I think every manager ought to have a copy of this book.

  • Tell me about a time when compelling communication allowed you and another person to really connect and to work together exceptionally well. What was the situation? What was it about you, the other person, and the communication that made this possible?
  • Dream into the future...your organization and your community have a wonderful mutual partnership. What does this look like? What three things might have been done in order to create this partnership?
  • Tell me about a time when you were part of an exceptional cooperation with a customer or customer group. How did this happen? What made it so special? What did you learn from the experience?
  • When you reflect on your time with this organization, what is the greatest contribution it has made to you and your life?
  • Where in the organization is participatory decision-making at its best? What contributes to it? How does it work?
  • Tell me about a time that was particularly fun at work. What was the high point of this time? What made it fun?
  • When people are in leadership positions, what two or three things can they do that will help you be the best you can be?
  • If positive energy were the flame of the organization, how would you spark it? How would you fuel it to keep it burning bright?
  • What trends and changes are you seeing in the world that excite you and give you a sense of the confidence in the possibilities for the organization's future?

Cool questions and just a sampling. I like questions like these, they help expand the mind and prevent us from going to that cold, dark, cynical small place we all have in our brains (some more than others!).

If you were building the project from the ground up and resources were not a barrier, what would you do?

What's the wildest idea that just might work?